MANILA, Philippines – San Miguel Consolidated Power Corp. (SMCPC) can now proceed with Davao del Sur power plant project after getting financial closure.
Green light for the Davao del Sur power plant project was provided after the power corporation’s five Mindanao electric cooperatives (ECs) and power supply (PSCs) were cleared.
The five ECs include Surigao del Sur II Electric Cooperative Inc. (Surseco II), Cotabato Electric Cooperative Inc. (Cotelco), Davao del Sur Electric Cooperative Inc. (Dasureco), Agusan del Sur Electric Cooperative Inc. (Aselco), and Zamboanga City Electric Cooperative Inc. (Zamcelco).
The 10-year PSCs consist of 5 MW for Surseco II, 10 MW for Cotelco, 10 MW for Dasureco, 10 MW for Aselco, and 35 MW for Zamcelco.
Once the commercial operations begin, the costs of SMCPC power supply may now be included in the ECs’ generation charges.
SMCPC will work on a Malita, Davao del Sur-located and coal-fired power plant that is operating on 2×150 MW circulating fluidized bed (CFB).
Energy Regulatory Commission (ERC) separated PSC applications from ECs and SMCPCP when it granted time interval relief to San Miguel.
ERC Spokesperson, Floresinda Digal, stated that firms are allowed to delay their application’s final resolution by implementing their current proposed contract. Since PSCs of SMCPC are already cleared, getting financial closure with lenders is no longer prohibited by power regulators.
The power regulators also stated that interim respite given to SMCPC’s PSCs is without preconception to its application for Certificate of Compliance (COC). COC is usually required before commercial operations begin.
ERC Chairman and CEO, Jose Vicente B. Salazar, stated that the green light given to San Miguel will benefit Mindanao in its power supply with new capacities to be delivered on time.
ERC added that DUs’ member-consumers will benefit from most reliable and least cost generation combination of supply contracts.
Comparing to plants having the same fuel source and capacity of five PSCs, the proposed rates under the project are lower. SMCPC is allowed to charge or refund the ECs with regard to final rates high and low against provided interim rates.